Austria’s OMV has pulled the plug on its planned $1 billion acquisition of a quarter interest in Russia’s Achimov 4A/5A project in response to Moscow’s invasion of Ukraine.

OMV’s board on 1 March decided not to pursue further discussions with Russian state giant Gazprom on the potential acquisition of a 24.98% interest in the Achimov 4A/5A development in Urenqoy, Russia’s largest gas condensate field, and to terminate the basis sale agreement.

The companies in October 2018 first struck the basic agreement for the touted Urenqoy acquisition and, since then, Gazprom has brought on stream the giant onshore field. OMV earlier said its share of production at plateau, which is expected to be achieved in 2026, would be more than 80,000 barrels of oil equivalent per day.

Gazprom and OMV have long done business together. An earlier deal, announced in late 2016, would have seen Gazprom take a 38.5% stake in OMV Norway. However, that deal hit the regulatory skids in Norway amid concerns the Russian state-controlled company could gain ownership of the country’s key gas infrastructure.

OMV on Tuesday also said it will review its involvements in the Nord Stream 2 pipeline.

The Austrian company is one of the five western investors in Gazprom’s $11 billion now idle Nord Stream 2 pipeline project, which Germany has refused to certify amid the Ukraine crisis.

OMV also owns just under 25% of Russia's Yuzhno Russkoye gas field, which feeds into the original Nord Stream gas pipeline to Germany and contributes 100,000 boepd to the company’s production, reported Reuters.

It is not known whether OMV intends to continue purchasing natural gas from Russia – it has an already extended long-term deal to import 6 billion cubic metres from Gazprom through 2040.